Interesting article about Oil

wanghong

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, Z. Y: ]& W, @0 H* B& Q: RBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
5 z' B: D8 h5 T  H* Q( U/ Mcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
  Q+ ?& T9 J$ _! \* ]- d9 f3 B1 mcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
' o; s% m8 a% ~" k% Pleast $50.00 per barrel. Today, oil price declined by a record amount.


! a% f& U1 X9 V* E! v+ f7 t. n$ wThere are several reasons the price of oil is decreasing in the face
7 K  F; o1 F% Y. Q' [1 ~of so much news. These reasons are:


9 ~5 i8 {* v' I- P( A" I1. New oil has been found in Canada, Montana, North & South Dakota and
1 _7 s6 w+ b2 {! N7 C( W. s$ @5 n: Tin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
5 C! e6 d1 a9 c- Z# Q/ vThis is the largest find in North America.
; s3 H$ y' o# V6 R5 y+ T2 ^- E' u( c* r& @
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6 }  p5 ^. a" h* C4 W, V& p# U' p3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


6 J; G% \0 B. r& w, I* V7 O4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
! }% D2 Q, A, i- p% F1 R: s4 ]potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


8 c, J. w# O: z& ^3 g) q- c+ Z+ y5. Virtually every restaurant in the US and all food processing plants
) d1 {/ H" d% u: B, T/ ?are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
- W- |! T! n' k; M9 m/ nconstruction around the world at this time. Several hundred more are
& f) w5 t* ^6 e- B) B' _3 L+ Nexpected to be built in the future. Much of the energy they produce
$ w- \- r7 a% B% {  Z+ T. m/ u% z$ dwill replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
% A8 m: e1 N  care experiencing 20% to 25% better fuel econony with the new
equipment.
9 p; F! O  {6 s) @) \8 P- b6 g( B

Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


! q  g& r1 H- w% b5 W8. Cities and counties throughout the US are selling the rights to
3 W, T7 O* E. Q: Z9 j2 X+ Tcapture methane gas from landfills. This is a huge source of gas
4 Z( X% ?* F) I/ h$ @available at very little cost or risk. The gas is displacing crude
! m$ A/ j1 V+ |; |! woil.
2 X. `2 i# N* R" U2 g% ^( K) U/ q0 w
7 q( m4 E+ u7 O+ z: ?
9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
6 i8 a' ?2 L1 ~- Voil wells.

9 g. O  Y7 T5 d- d
% R/ e7 L" ]& T# d4 g10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


: }5 n! E4 h. g4 `% oEach of the above by itself will not make a large difference in the
4 \: Q7 i. G/ L1 m% lprice of crude oil but the sum of all of them together is world
' t6 C+ ?. }6 E5 S- T* m+ t% bchanging. The important thing is that OPEC no longer has the ability
  |5 [/ T" Y$ G) k% ?7 \& u0 H0 pto control oil prices.

: j! c+ D: j$ G. P
5 M- j+ p. ^2 z+ xWith the above scenario, I still believe that there are under
% G5 }& d- k; N; L6 l1 x6 O( Nperformed OIL companies and probably they are yet to get the justified
value .....
, N; w4 g; @% l, ^& B2 CIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
4 `; F) `% n. u3 V( h' t2009 ... FYI-Only